A “dead cat bounce” is a short-lived market rebound after a substantial decline. It is a specialized finance expression; do not use it as a neutral label for any small improvement unless the temporary-rebound sense is intended.
ReviewedEvidence1 sourceSectionPhrases & Idioms
Quick answer
A “dead cat bounce” is a short-lived market rebound after a substantial decline.
Key details
Canonical Formdead cat bounce
Core Meaninga temporary recovery in share prices or value after a large fall, rather than necessarily a lasting reversal
Further guidance
Contextual Examples
Shares rose briefly after the sell-off, but traders debated whether the move was only a dead cat bounce.
A one-day gain after a steep decline may be described as a dead cat bounce only when the temporary-rebound interpretation is intended.
History Boundary
Current dictionary-supported meaning is published without claiming an exact inventor, coinage date, or absolute first use.
Meaning
a temporary recovery in share prices or value after a large fall, rather than necessarily a lasting reversal
Meaning Boundary
Do not use it as a generic label for any small improvement. Its documented sense is a short-lived recovery after a large fall.
Practical Use
Use “dead cat bounce” in market commentary for a temporary rebound after a substantial decline when the rebound is not being treated as a durable reversal.
Tone Boundary
The expression is informal and vivid for finance writing; in formal or reader-sensitive contexts, “temporary rebound” may be clearer and less distracting.
Usage Boundary
It is a specialized finance expression; do not use it as a neutral label for any small improvement unless the temporary-rebound sense is intended.
Sources and evidence
Sources are shown with the role they play in this guide. Historical or style-sensitive claims are kept within the evidence boundary described above.
Actionable Indication of Interest is a current federal securities-regulation defined term. This guide preserves the rule-specific definition and boundaries instead of replacing it with informal market shorthand.
Administrative Data is a current Regulation NMS defined term for specified administrative, control, and technical messages in the market-data plan framework.
Affiliate of a Subscriber is a current Regulation ATS defined term. This guide preserves the rule-specific meaning and boundary instead of replacing it with informal market shorthand.
Under current U.S. Regulation NMS definitions, aggregate quotation size is the sum of the quotation sizes of all responsible brokers or dealers communicating bids or offers in an NMS security at the same price. Treat this as a U.S. securities-regulation definition; it should not be generalized to unrelated uses of aggregate size or quotation outside Regulation NMS.
Alternative Trading System is a current federal securities-regulation defined term. This guide preserves the rule-specific definition and boundaries instead of replacing it with informal market shorthand.
Auction Information is a current Regulation NMS term for specified, publicly disseminated exchange data generated leading up to and during securities auctions.
Under Regulation NMS, an automated quotation is a quotation displayed by a trading center that can be acted on through an automated facility meeting specified immediate-or-cancel response and update conditions. Treat this as a U.S. securities-regulation term. The definition is jurisdiction- and rule-specific, not a general dictionary label for every electronic market quote.
Under current U.S. Regulation NMS, an “automated trading center” is a trading center with systems, procedures, and rules capable of displaying automated quotations, identifying non-automated quotations as manual, and applying reasonable standards for changes between automated and manual status. This is a condensed rule-scoped explanation of 17 CFR § 242.600; the full definition contains multiple operational conditions and should be consulted for compliance work.
